New Landlord Not Liable Under Terms of Contract of Sale

April 1, 1998

LVT Number: 12248

Tenant complained of a rent overcharge. The DHCR ruled for tenant, and tenant got a judgment against landlord for $73,000. Landlord went into bankruptcy, and tenant sued to enforce the judgment against new landlord. The court ruled against tenant, and tenant appealed and lost. The contract of sale stated that new landlord would be responsible for all future DHCR complaints and orders. New landlord didn't accept responsibility for prior DHCR orders such as the one issued to tenant a year before the contract of sale was signed.

Tenant complained of a rent overcharge. The DHCR ruled for tenant, and tenant got a judgment against landlord for $73,000. Landlord went into bankruptcy, and tenant sued to enforce the judgment against new landlord. The court ruled against tenant, and tenant appealed and lost. The contract of sale stated that new landlord would be responsible for all future DHCR complaints and orders. New landlord didn't accept responsibility for prior DHCR orders such as the one issued to tenant a year before the contract of sale was signed.

Mars v. Venture Realty Group, Ltd.: NYLJ, p. 25, col. 1 (3/5/98) (App. Div. 1 Dept.; Rosenberger, JP, Nardelli, Wallach, Rubin, JJ)

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